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Designed to be the second day of a two-day series on the electronic component distribution industry, following a day spent discussing Note on the Electronic Component Distribution Industry and Raytheon Company: Diversification. The important teaching themes which this case is designed to highlight are: (1) to practice the diagnosis of the strategic health of an industry leader, with emphasis on applying the tests of consistency for an effective strategy; (2) to provide practice in both qualitative and quantitative diagnosis of a company''s resources, and the relating of these to strategic priorities; (3) to examine the strategic difficulties in attempting to be a large firm in a fragmented industry; and (4) to explore the difficulty of limiting growth and turning away opportunity as a strategic alternative. The series can be positioned either early in a course on strategy formulation, highlighting industry analysis and strategic testing, or later in such a course with the focus on strategic reaction to innovation, responding to a changing industry and assessing strategic alternatives.